The City Football Group (CFG) already owns Melbourne City and New York City, as well as holding a stake in Japanese side Yokohama F Marinos, and is keen to expand its network of clubs in both established and emerging football regions.

CFG sources hope expansion into the South American market will boost its global profile, as well as aiding in the purchase of players from the region.

Gabriel Jesus' £27 million move from Brazilian side Palmeiras to City was held up by third-party ownership issues, and it is hoped a presence in South America would help avert any similar obstacles in future.

A club in Uruguay would also allow the CFG to more easily recruit the talented South American youngsters identified by City's extensive scouting network.

Manchester City are looking to increase their presence in South America, including the established Brazilian market.